Guide to registering a sole proprietorship

The process of registering a sole proprietorship in the Czech Republic is very simple, and we offer you a guide on how to do it.

1. For foreigners, a criminal record certificate from your country of citizenship is required. This is the most energy- and time-consuming process of all the ones you will have to go through on your way to your own business activity.
2. Next, you must choose which type of trade your business falls under – in the Czech Republic, there are three types: unqualified trade (volná živnost), craft trade (řemeslná živnost), and regulated trade (vázaná živnost). The list of activities can be found in our attachment.
3. An unqualified trade (volná živnost) can be registered without any additional proof of qualification or experience. The other types of trades are registered upon providing proof of your qualification and experience, as required by law. If you don’t have the necessary qualifications and/or experience, you can use the services of a responsible representative (odpovědný zástupce). You can find one for your type of activity using a search engine. The cost of such specialists’ services ranges from a few thousand to several tens of thousands of crowns per year, depending on the type of activity and the level of the person’s involvement.
4. To register your sole proprietorship, you will also need proof of your place of business (místo podnikání). If you are the property owner, you can write this confirmation yourself. If you are renting an office or other commercial space, the owner of the premises can provide you with this confirmation on a special form.
5. Next, you must fill out the single registration form (jednotný registrační formulář). You can do this yourself, but the staff at the municipal office (živnostenský úřad) can also help you fill it out correctly.
6. With the documents from points 1-5 of this list, you must go to the Trade Licensing Office (živnostenský úřad) and apply for registration of your business activity (OSVČ).
7. ! Ask the employee at the Trade Licensing Office to automatically notify all state institutions of your registration (the social security administration, public health insurance company, and the tax authority). In this case, you won’t need to do any additional registrations!

By law, the registration period for a sole proprietorship in the Czech Republic is up to 30 days, but in practice, you will be registered within three business days!